What could the future of CapMetro's child care services look like?

Editor’s Note: The above video shows KXAN News’ top morning headlines from Monday, July 22, 2024.

AUSTIN (KXAN) — After the CapMetro Board of Directors voted to extend the contract on its daycare program services earlier this year, board members received an update Monday on possible future solutions to continue providing access to child care.

Donna Simmons, CapMetro's executive vice president of administration, led Monday's discussion. Currently, the Capital Metro Child Care & Early Learning Center has 158 full-time dependents of employees. CapMetro defines "full-time" as infants to 4 years old who have more intense care needs. Conversely, CapMetro's center has 392 part-time dependents of employees who are enrolled at the facility for aftercare and summer care services.

In a survey sent out to CapMetro employees, nearly half of respondents said they prefer child care closer to where they live, with 45% selecting that option. Others preferred child care services closer to their job, with 27% choosing that alternative.

CapMetro staff floated three options the transit authority is considering for future services:

• Dependent care flexible spending account (FSA) with employer contribution
  • Figure out annual amount for FSA employer contribution and, from there, fund the FSA account as claims are paid
  • It wouldn't be taxable to the employee and reimbursement would be available for licensed providers and individual providers
• Direct payment to providers
  • Determine a monthly stipend amount and establish a contract with a vendor to process those payments "directly to childcare facility used by employee"
  • It would be taxable to the employee and payment would be made to the licensed providers and individual providers
• Income or need-based services for both plans
  • Solidify income base table for eligibility
  • Correlate that need base to number of family size
  • CapMetro would create process to review applications and determine applicants' eligibility

CapMetro officials said come September, they will increase tuition on their existing contract with Bright Horizons to reduce their subsidy for childcare. That contract ends in March 2025, officials noted.

CapMetro is considering a possible lease agreement with a nonprofit child care center for a five-year lease, with a possible five-year lease extension available. That would allow for priority enrollment for CapMetro and service provider employees, with CapMetro responsible for providing utilities, security and building maintenance as well as administrative support.

In CapMetro's current fiscal year 2024 contract, the transit authority allocated more than $668,000 to child care services. Right now, CapMetro is considering a $570,000 allocation for fiscal year 2025.

From now through September, the transit organization will flesh out which child care partnership option to approve and the contractual needs for it, as well as flesh out details for the stipend program. The CapMetro Board of Directors is expected to adopt its fiscal year 2025 budget on Sept. 23, with board action on that future child care center partnership slated for October.

From November through March 2025, leaders will work to implement those changes to child care services before the transit agency implements the child care stipend program next April.